VIC Teant asking for 50% rent reduction

Discussion in 'Property Management' started by sam999, 12th May, 2020.

Join Australia's most dynamic and respected property investment community
  1. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
    PM also said to me due to privacy she can't share with me details or supporting documentation submitted by the tenants with application
     
  2. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    6,196
    Location:
    Australia
    The day when landlords can turn the tables on tenants won't be a day too soon. Generally tenants have it good. I should know, I rent too.

    Pound for pound, there are def more unscrupulous renters vs unscrupulous landlords.
     
  3. Lil Skater

    Lil Skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,109
    Location:
    Melbourne
    That’s utter bull. We are your representative, the information we collect is on your behalf. If you ever decided to manage the property yourself you have a right to all of these details.

    In fact their privacy disclosure on their applications would say something to that effect.

    As an agent we request these details too in the event we take over a file, some agents won’t provide it and we push for it. If we cannot get the details we will ask tenants to fill out documents for us (such as license details for insurance).
     
    Mat, Gockie, sam999 and 4 others like this.
  4. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
    Yes, they are a couple with a young child too

    Thanks for the detailed numbers and your input
    and apart from moving 2 months ago they have been raising maintenance issues for minor things regularly and we have already spent almost 1 month rent fulfilling their desires :rolleyes:
     
  5. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
  6. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,272
    Location:
    Sydney? Gold Coast?
    So, they've been there for 2 months, but only paid one month's rent, but you've had to pay all of that out on silly requests? I hate tenants like this. Well, that stops now. Turn the money off. Only real maintenance to be done. Toilet blocked, well then Mr tenant, we will fix, but if there turns out to not be a problem, or if it was caused by you, you will need to pay for it. Again, tell your PM that this is NOT ON. You will not be 'fixing' anything else around the house unless it's urgent, and the bill will come back to the tenant if it was caused by them.

    Now, if they've got a child, they should also be getting parenting payment on top of their Jobseeker or Jobkeeper and rent assistance (if they are even eligible for these). Also, get rid of them as soon as you can. The very day you are able to give them notice to leave, send it. You don't want them for any longer than you have to.
     
    AxeLy likes this.
  7. Lil Skater

    Lil Skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,109
    Location:
    Melbourne
    Everything says “up to” so I understand that as some people won’t get the full $2k - but I’m honestly not sure as I’ve not had any paid as yet.

    I wouldn’t be giving them a reduction, unless they’re impacted by not receiving any assistance. The rent is low enough that it’s perfectly affordable.

    Your PM needs to apply to CAV immediately for the rent so it can be referred to VCAT.
     
  8. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
    unfortunately still same situation
    over a month in arrears, no hardship details provided so dont know if they are eligible for govt grant
    if we offer them reduction now and they are not eligible than we will likely have to fund all reduction out of our pocket

    PM says CAV can reduce the the rent even more than what the tenant is asking for
     
  9. Lil Skater

    Lil Skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,109
    Location:
    Melbourne
    Your PM is wrong, CAV is there for mediation - they cannot force payment reductions or payment plans.

    Has your PM applied to CAV for mediation yet? If not get on it, there's delays and you cannot proceed to VCAT without first going through CAV. VCAT can make changes to the tenancy agreement, and I'd be ensuring they advise the tenant that they're taking this approach to see if the tenant will come to the party prior.

    ** I have only heard second hand that the process isn't entirely fair and have only recently applied for my first lot of mediation due to the same sort of circumstance, but CAV does not have the power to alter leases without agreement of both parties. Happy to update and give first hand experience once that starts.
     
    skater and thatbum like this.
  10. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,171
    Location:
    03 9877 3000
    When we made our enquiries, we were told that they take into account the hardship of both parties and tend to favour the party who's doing it 'tougher'. An overly socialist perspective if you ask me.
     
    AxeLy, skater and Traveller99 like this.
  11. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
    perhaps LL can also compare their fiances with the banks and compare who is having it 'tough'
     
    AxeLy, Mat and Pingu1988 like this.
  12. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,523
    Location:
    Sydney
    That makes things very easy. You want something from me, but are unwilling to give anything to me? "NO!"
     
    Pingu1988, craigc and skater like this.
  13. Traveller99

    Traveller99 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    755
    Location:
    Settled
    I'm about to enter into mediation of which I am told rarely falls in favour of landlords. My tenants have now stopped paying entirely and are effectively living rent free. Utterly infuriating.
     
    AxeLy and Pingu1988 like this.
  14. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,859
    Location:
    My World
    love this, tell the tenant to .... themselves:)
     
  15. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
    it is indeed frustrating, govt has purposely skewed the rules so the landlords are massively disadvantaged
    feels like we are living in china
    its LL property, either tenants pays or leaves the property
    market can decide the rent
    govt can help families directly, no need to make LL jump through the loops
     
    AxeLy and SaritsinOz like this.
  16. Lil Skater

    Lil Skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,109
    Location:
    Melbourne
    That’s how I understand it too.

    Asking another average private citizen to pick up the tab isn’t a solution. We’re not talking about Jeff Bezos who could potentially liquidate billions and who probably has a decent amount of cash without needing to liquidate anything.

    Banks are not missing out. They will receive their interest if someone doesn’t pay, they will take assets away. Sure, they’ll have some reduced income - but they are not offering waivers, only deferrals or payment arrangements. Why is this not the same?

    Don’t get me wrong, plenty of tenants need assistance. It shouldn’t be up to others to offer that at their own expense that can see them in financial hardship too.

    Obviously the Government doesn’t have unlimited funds and honestly what they have provided is really incredible. I just don’t like the expectation that another party should be out of pocket, if they can afford it and are happy to - great. But it shouldn’t be an expectation that everyone can.
     
    AxeLy, Francesco, Pingu1988 and 3 others like this.
  17. Traveller99

    Traveller99 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    755
    Location:
    Settled
    The institutions that were created to uphold the rule of law have been compromised by radical egalitarianism over the past two decades. The ideologues who sit and rule within these institutions are products of universities that churn out activists to enforce Conflict Theory. Every dispute is framed through an oppressor/oppressed lense whereby the activists who preside over the commissions and sometimes courts, rule according to a wealth distribution and power narrative. Automatic and stereotypical assumptions are often made about landlords based on 18th century perspectives of them oppressing the underclass. One just needs to look at the ruling health authority in Victoria, Annaliese Van Diemen, to witness how deep the rot has set in.
     
    AxeLy, craigc and Peter_Tersteeg like this.
  18. sam999

    sam999 Active Member

    Joined:
    12th May, 2020
    Posts:
    36
    Location:
    syd
    that's the thing. bank will just defer the payment and get it later on (probably with extra interest)
    every day we make small little sacrifices in our life, that take out food, the new dress, holiday
    we try to do the right thing to give our families a better future than the govt comes along and dictates how much discount we should be giving to tenants.
    how is it LL fault if tenant did not save for a rainy day
     
    AxeLy and Pingu1988 like this.
  19. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    im sure if landlord was begging on the streets and living in cardboard box vs tenant in severe hardship because they had to go from 3 ply toilet paper down to 2 ply,

    tenant would be given priority
     
    AxeLy, Pingu1988 and abc_123 like this.
  20. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Before everyone gets too angry at CAV, I don't think there's any indication they are forcing rent reductions on lessors - its all by consent. If you don't want to lower the rent, don't agree with it and it won't happen...
     
    Pingu1988 and Lil Skater like this.